(de-news.net) – Rising public expenditures have resulted in a significant increase in Germany’s government expenditure ratio over the past year. According to the Federal Statistical Office, the ratio reached 49.5 percent in 2024, representing an increase of 1.1 percentage points compared to 2023. The government expenditure ratio reflects the proportion of total government spending relative to the gross domestic product (GDP). Official data indicate that the rise in the said ratio was not only driven by significantly higher social benefits, such as pensions, but also by increased expenditures associated with care services, basic income support, and hospital treatments.

A survey suggests that particular costs could be reduced, not only in direct and indirect terms for the state, but also for the private sector, by means of a reduction in bureaucratic processes. Employees in small and medium-sized enterprises (SMEs) reportedly dedicate, on average, seven percent of their working hours to bureaucratic tasks, as revealed in a representative survey conducted by the state-owned development bank KfW involving 10,000 SMEs. The financial burden imposed on these companies by bureaucracy is estimated at a total of 61 billion euros. This encompasses areas such as taxation, record-keeping, documentation, and accounting.

From the perspective of the SME sector, the reduction of bureaucratic hurdles is currently regarded as the most pressing economic policy issue. Nevertheless, bureaucratic obligations remain foundational to the economic system, with standardized procedures serving as prerequisites for legal certainty and fairness in competition.